Bank Nifty opened today’s session at 52,146 versus Friday’s close of 52,266. After opening with a minor gap-down, the index recovered and is now trading around 52,415, up 0.3 per cent.
The advance/decline ratio of Bank Nifty stands at 8/4, giving the index a bullish bias. HDFC Bank, up 2.6 per cent, is the top gainer. At the other end, Kotak Mahindra Bank, down 2.6 per cent, is the top loser.
Nifty PSU Bank has rallied 0.9 per cent so far today whereas Nifty Private Bank is flat. Thus, the public sector banks are broadly outperforming their private peers.
Bank Nifty futures
Bank Nifty futures (July contract) opened today’s session lower at 52,100 versus last week’s close of 52,271. But it turned the direction upward and is currently trading around 52,400, up 0.3 per cent.
The contract has bounced off the support at 52,000, which is also the lower boundary of the 52,000-53,300 range. So, from the current level, the likelihood of a rally is high.
Bank Nifty futures can appreciate to 52,800. A breakout of 52,800 can lift the contract to 53,300, a considerable resistance.
On the other hand, if Bank Nifty futures slip below the support at 52,000, it can decline to 51,500, a support. Subsequent support is at 51,000.
Trading strategy
Buy Bank Nifty futures now at 52,400. Add longs if the price dips to 52,100. Place initial stop-loss at 51,800. When the price touches 52,800, revise the stop-loss to 52,300. Book profits at 53,200.
Supports: 52,000 and 51,500
Resistance: 52,800 and 53,300